The Securities and Exchange Commission ("Commission") announced today that, on August 16, 2002, the United States District Court for the Eastern District of New York entered final judgments against Michael Nicolaou and Panayiotis Papaseraphim. Without admitting or denying the Commission's allegations, Nicolaou consented to the entry of a judgment that permanently enjoins him from violating Sections 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5. The judgment requires Nicolaou to pay disgorgement, along with prejudgment interest, in the amount of $22,419, and, based upon his sworn representations in his Statement of Financial Condition, waives payment of $21,859 and does not order him to pay a civil penalty. In a related administrative action, without admitting or denying the Commission's findings, Nicolaou consented to the entry of a Commission order barring him from association with any broker or dealer.

In addition, Papaseraphim consented to the entry of a judgment that permanently enjoins him from violating Sections 10(b) of the Exchange Act and Exchange Act Rule 10b-5. The judgment requires Papaseraphim to pay disgorgement, along with prejudgment interest in the amount of $5,906 and a penalty of $5,297.

The Commission alleged that Eric Patton, an executive with WLR Foods, Inc. ("WLRF"), at the time a large poultry producer headquartered Virginia, communicated to his brother, Steven Patton, that there would be an announcement within two or three days that a company would acquire WLRF at a price of $14 per share. On or about September 26, Steven Patton passed that information to Nicolaou, who, at the time, was his registered representative, and indicated the news came from his brother, Eric Patton. Nicolaou then passed material, nonpublic information concerning the announcement of the WLRF acquisition to, among others, Papaseraphim, his cousin, who bought 700 shares of stock and earned profits of $5,297.

The Commission's civil action against Eric and Steven Patton and other defendants is currently stayed while the parallel criminal case in the Eastern District of New York is proceeding. Litigation Release No. 17495 (April 30, 2002).